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Disintegration and trade in South-eastern Europe

  • Olivier Lamotte



This paper analyses the impact of disintegration of an economic union on trade patterns. Our study focuses on South-eastern Europe, which was highly fragmented during the nineties because of the dissolution of the Council of Mutual Economic Assistance (CMEA) and of the Socialist Federal Republic of Yugoslavia (SFRY). The empirics are based on the gravity equation and the estimation uses a 29-country panel database for 1993-2001. We show that despite the setting up of barriers to trade and the war, trade flows between countries of the region remained higher than explained by their economic size and mutual distance.

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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number j04031.

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Length: 24 pages
Date of creation: Dec 2003
Date of revision:
Handle: RePEc:mse:wpsorb:j04031
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  6. Peter Egger, . "A Note on the Proper Econometric Specification of the Gravity Equation," WIFO Working Papers 108, WIFO.
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  9. Keith Head & Thierry Mayer, 2004. "Non-Europe : the magnitude and causes of market fragmentation in the EU," Cahiers de la Maison des Sciences Economiques bla99004a, Université Panthéon-Sorbonne (Paris 1).
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  19. Kaminski, Bartlomiej & de la Rocha, Manuel, 2003. "Stabilization and association process in the Banlkans : integration options and their assessment," Policy Research Working Paper Series 3108, The World Bank.
  20. Deardoff, A.V., 1995. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," Working Papers 382, Research Seminar in International Economics, University of Michigan.
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